Fake News

42 Pages Posted: 27 Dec 2017

See all articles by Andreas Grunewald

Andreas Grunewald

University of Bonn - Economic Science Area

Matthias Kräkel

University of Bonn - Economic Science Area; Institute for the Study of Labor (IZA)

Abstract

In the last decade, social media and the Internet have amplified the possibility to spread false information, a.k.a. fake news, which has become a serious threat to the credibility of politicians, organizations, and other decision makers. This paper proposes a framework for investigating the incentives to strategically spread fake news under different institutional configurations and payoff structures. In particular, we show under what conditions institutions that foster transparency in the media cause more fake news. Complementary, we study what kind of environments are particularly susceptible to the production of fake news.

Keywords: campaigning, electoral competition, signal jamming, vertical product differentiation

JEL Classification: D72, D8, H0, L1

Suggested Citation

Grunewald, Andreas and Kräkel, Matthias, Fake News. IZA Discussion Paper No. 11207, Available at SSRN: https://ssrn.com/abstract=3092531

Andreas Grunewald (Contact Author)

University of Bonn - Economic Science Area ( email )

Adenauerallee 24-42
D-53113 Bonn
Germany

Matthias Kräkel

University of Bonn - Economic Science Area ( email )

Adenauerallee 24-42
BWLII
D-53113 Bonn
Germany
+49 228 73 92 11 (Phone)
+49 228 73 92 10 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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